Former Behringer REIT Sells Hawaii Hotel for $62 Million
Lightstone Value Plus Real Estate Investment Trust V Inc., a publicly registered non-traded real estate investment trust formerly known as Behringer Harvard Opportunity REIT II, sold the Courtyard Kauai at Coconut Beach, a 311-room hotel located in Kapaa, Hawaii to KHS LLC, an unaffiliated third party, for $62 million. The REIT’s net proceeds from the sale were approximately $27 million.
The property, previously named Aston Kauai Beach at Makaiwa, was originally purchased in October 2010 for approximately $38 million by a joint venture partnership between the then-Behringer REIT and private real estate investment firm JMI Realty. The REIT owned an 80 percent interest in the property.
Courtyard Kauai at Coconut Beach is situated on a 10.4-acre oceanfront site on the eastern side of the island of Kauai, approximately 15 minutes north of Lihue Airport. Amenities including a day spa, a swimming pool and whirlpool spa, a fitness center, restaurant and open-air lounge, tennis courts, a business center, and six meeting rooms totaling nearly 6,200 square feet.
Behringer Harvard Opportunity REIT II replaced its current advisor and property manager last month with affiliates of Lightstone Group, a national real estate investor/developer and sponsor of non-traded REITs that oversees a $2.4 billion real estate portfolio.
The REIT went effective in January 2008 and closed in March 2012 after raising $265 million in investor equity. The company’s portfolio is comprised of eight properties with a total investment cost of $229 million.
